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Topic
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if we collect special levies on behalf of a specific project can we use that money for another project that is deemed more important?
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Depends who ‘we’ is. A committee must spend in accordance with a budget approved by a general meeting. A little bit of practical leeway is reasonable but not a complete reversal of a general meeting decision. On the other hand, a general meeting can rescind a previous decision and replace it with an alternative decision.
Section 81 (4) of the Act says this (my emphasis in bold): If the owners corporation is subsequently faced with other expenses it cannot at once meet … it must levy … a contribution to the administrative fund or capital works fund, determined at a general meeting of the owners corporation, in order to meet the expenses.
Just my opinion but I think you are locked into paying for the original purpose for which the money was raised. That said, I think Sir Humphrey is right that no one is going to be jailed if a general meeting diverts the funds to an unexpected and more pressing issue
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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